The annual Favorite Financial Firms survey results are in, and they offer a revealing glimpse into where ambitious young professionals want to work in 2025. This year’s rankings show significant shifts in how recent graduates and early-career finance professionals view potential employers across investment banking, private equity, hedge funds, and venture capital.
Morgan Stanley claimed the top spot for investment banking, edging out Goldman Sachs which fell to second place. The survey reveals Morgan Stanley’s strengthened position stems from its enhanced work-life balance initiatives and competitive compensation packages. “We’ve made deliberate efforts to address burnout concerns while maintaining our commitment to excellence,” said James Reynolds, Morgan Stanley’s Head of Campus Recruitment.
The private equity landscape sees Blackstone continuing its reign as the most desired destination. Their structured mentorship program receives particular praise from junior professionals. “Young talent today wants more than just compensation—they want genuine growth opportunities,” explains Sarah Chen, a private equity recruitment specialist. Blackstone’s two-year rotation program, which exposes analysts to multiple investment strategies, appears to be a significant draw.
Meanwhile, the hedge fund category witnessed notable movement. Citadel jumped three positions to claim the top spot, displacing Bridgewater Associates. This shift reflects Citadel’s aggressive talent acquisition strategy and its exceptional performance during recent market volatility. The firm’s average compensation for entry-level positions now exceeds $400,000 annually for top performers.
Venture capital preferences show increasing interest in sector-specialized firms. Andreessen Horowitz ranks first, with respondents citing its deep tech expertise and entrepreneur-friendly approach. First-time fund managers with specific industry experience are also gaining traction among young professionals seeking more hands-on investment experience.
Work culture remains the decisive factor for many respondents. Nearly 68% identified company culture as “extremely important” in their employment decisions, outranking even compensation (61%). This marks a significant shift from pre-pandemic surveys where compensation typically dominated decision factors.
Remote work flexibility continues to influence preferences. Firms offering hybrid models with clear expectations scored 23% higher in desirability than those requiring full office presence. “Today’s graduates want structure but also flexibility. They’re willing to work hard but expect reasonable accommodations,” notes Dr. Emily Westbrook, who specializes in financial workforce trends.
The growing importance of ESG credentials appears prominently in this year’s results. Firms with robust environmental, social, and governance commitments saw a 31% increase in preference ratings compared to last year. This trend is particularly pronounced among professionals under 25, where 73% indicated they would accept slightly lower compensation to work at firms with strong sustainability practices.
Technology adoption rates also factored significantly in firm rankings. Companies investing heavily in AI, blockchain, and other emerging technologies scored 28% higher in attractiveness to young talent. “The next generation wants to work where they can develop skills at the intersection of finance and technology,” explains Marcus Johnson, Chief Innovation Officer at a leading financial technology consultancy.
The survey reveals geographic preferences are evolving too. While New York remains the dominant financial hub, cities like Miami, Austin, and Salt Lake City are gaining traction as desirable locations. Cost of living concerns combined with quality of life considerations appear to be driving this trend.
Diversity and inclusion initiatives influence firm perceptions significantly. Companies with transparent DEI metrics and visible progress increased their desirability ratings by 27%. “Young professionals increasingly view diversity not just as a moral imperative but as a business advantage,” says Tanya Williams, founder of Financial Inclusion Partners.
The data shows stark contrasts between undergraduate and MBA preferences. Undergraduates place higher value on training programs and clear advancement paths, while MBA graduates prioritize early responsibility and deal exposure. This distinction helps explain why certain firms consistently attract specific educational backgrounds.
Compensation structures continue to evolve. Fixed salaries are rising across the industry, but performance
